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Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on March 30, 2019. No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $42,000 and an estimated useful life of 5 years. Assume half-year convention for tax.
Problem a. Calculate the amount of depreciation for 2019 using financial accounting straight-line depreciation (not the straight-line MACRS election) over the truck's estimated useful life.
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